Small Business Tax Cut Bill In Senate Could Lead To Almost 1 Million Jobs, Study Estimates

WASHINGTON -- The small business tax cut bill that the Senate is rolling out Tuesday would spark the creation of nearly 1 million jobs, according to an economic analysis provided to The Huffington Post.

The Small Business Jobs and Tax Relief Act would grant small businesses 10 percent tax breaks for expanding payrolls either through hiring or raises, and would extend for another year the 100 percent bonus depreciation that businesses can take on assets. The bill, which also contains a break on the alternative minimum tax for corporate taxpayers, would cost about $28 billion overall.

The private group Regional Economic Models, Inc., estimates the combined impacts of the cuts would be worth about $87 billion added to the GDP and 990,592 jobs. The bill would also boost personal incomes by about $73 billion, according to REMI's analysis.

REMI explained that it did the study using preliminary estimates from Congress' Joint Tax Committee and information from the Small Business Administration to estimate impacts across states and industries.

The bill represents Senate Democrats' efforts to both spur the economy and put Republicans on the defensive by forcing them to choose whether or not to back the sorts of tax cuts that they normally would in the past. Republicans were still mulling their options Tuesday morning, and waiting to see whether they would be allowed to have amendments.

But for Democrats, the measure is a no-brainer.

"Creating close to one million jobs would put a meaningful dent in the unemployment problem," said Sen. Chuck Schumer (D-N.Y.), the head of the Senate Democrats' policy and messaging efforts. "This tax cut is not a cure-all, but it could be a difference-maker for small firms on the fence about adding payroll. After last month's sluggish jobs numbers, we may be on the verge of a rare moment of agreement on how to help the economy."

The bill is also meant as an answer to a $46 billion small business tax cut proposed by House Majority Leader Eric Cantor (R-Va.), which Democrats and outside analysts estimate would disproportionately help the wealthy -- business owners such as doctors, finance firms and even sports teams -- while including no requirement for businesses to hire.

Michael McAuliff covers Congress and politics for The Huffington Post. Talk to him on Facebook.

The Women Running for Senate in 2012

The Women Running for Senate in 2012

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Sen. Maria Cantwell

Sen. Maria Cantwell (D-Wash.) was elected to the Senate in 2001, and she serves as chair of both the Senate Subcommittee on Aviation Operations, Safety and Security, and the Senate Subcommittee on Energy. She is also a member of the Senate Committee on Finance, the Committee on Indian Affairs and the Committee on Small Business and Entrepreneurship.
Cantwell is a strong supporter of abortion rights, having voted against the 2003 Partial-Birth Abortion Act and the Unborn Victims of Violence Act in 2004. She is also an advocate for environmental protection and has voted against oil drilling in Alaska's Arctic National Wildlife Refuge several times.
Cantwell is a strong advocate for civil liberties, and she was one of just 13 Democrats to vote against the reauthorization of the Patriot Act.
Following her defeat by Republican Rick White in the 1994 House of Representatives election, Cantwell joined the private sector, becoming the senior vice president of RealNetworks. In 2000, Cantwell was elected to the Senate and became one of the first two women to defeat incumbent senators, alongside Sen. Debbie Stabenow (D-Mich.).